December 19th, 2014 3:59 AM by Jackie A. Graves
If you’re thinking of selling your
home, you may be counting the profits based on your estimated home
value and the balance on your mortgage statement.
Before you get too excited, remember that putting your home on the
market comes with its own costs. However, homeowners can use some creativity
and comparison shopping to reduce their costs and boost their bottom line.
While you may feel as if you’d rather spend money to buy your
next property rather than to sell your house, remember that careful
spending on the marketing of your home can result in a higher profit at the end
of the transaction.
Get Your Home Ready for Market for Less
Before you list your home
for sale, you’ll need to spend some time and money getting the
property in pristine, buyer-friendly condition so it garners the highest
possible purchase price. While you may think you need to spend thousands on
a new bathroom, paint your
entire home or put in a new garden,
you should consult a
REALTOR® who can tell you the best ways to spend your
energy—and your cash.
Getting rid of clutter,
organizing your closets, paring down your
personal photos and deep-cleaning every inch of your home are
all cost-free steps that go a long way to improving your
home’s appeal. Simple, inexpensive fixes such as replacing cabinet
knobs and light bulbs can make your home look cleaner and more modern without
requiring excessive spending.
Limit Spending During the Marketing Phase
Once your home goes on the market, it’s best to make it available as
often as possible for potential buyers and their agents. If you have a pet that
could disturb buyers or makes your home seem crowded, you may be tempted to pay
for boarding. Instead, look into your options for pet-sitting exchanges or
develop a routine to take your pet with you when you leave the property so it can
While staying away during a scheduled open house can be
relatively easy to arrange, vacating your home for unexpected or last-minute
visitors can play havoc with your and your family’s lives, especially around
You can head to a restaurant to wait out visitors or to avoid cooking
entirely so that your kitchen is always pristine and your home never smells
like fish or spices—but that can get costly. Instead, have a variety of
contingency plans such as visiting the library to do homework, purchasing
picnic supplies for impromptu meals and making plans with nearby friends to
cook at their home when necessary.
Reduce Your Closing Costs
Closing costs on a
home sale are typically a far greater expense than restaurant meals or pet
care, but sellers can take steps to keep their costs as low as possible. Home
buyers typically pay most of the closing costs, but this is
negotiable and varies according to local market conditions.
Typically, the largest closing cost paid by sellers is the commission for
the agents involved in the transaction. Commissions vary by location and are
negotiable, but they commonly can be up to 6% of the sale price. As a seller,
you can negotiate the commission with your listing agent, but remember that
working with a knowledgeable REALTOR® can increase the sale price of your home
and your ultimate profit.
Other costs at the closing for sellers also could include paying off
your loan balance, any unpaid property taxes and outstanding homeowner
association dues—none of which are negotiable. Depending on whether you hire
your own attorney and on the local practices in your market, you may need to
pay an attorney’s fee, transfer taxes and a title insurance premium.
Consult your agent and a title company to get an estimate of your costs
and to ask if any of those fees can be reduced or negotiated.
By: Michele Lerner | To view the original article click here